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Updated 9 months ago,
How to account income from multiple properties on a single 1099
Scenario: I have 3 properties managed by on property manager. I receive one 1099 for all properties at the end of the year. I am using a CPA to do my taxes. How should the tax return capture each property separately as well as the 1099.
1099 Total (example): 36,000k total
property 1: 10k total rent
property 2: 20k total rent
property3: 6k total rent
This is what we are doing and just curios as pros and cons: We report a schedule E for each property. property 1 total rent is 10k, property 2 total rent is 20k, property 3 total rent is 36k
property 3 then has a schedule statement that shows 36k total minus 30k.
She stated she did this so that we report the full 36k 1099. If we didn't have a line item for the 36k then IRS would flag our return because we have a 36k 1099 that is not being reported.
side note: I have about 25 properties managed by 4 property managers. In short I am replicating the process 4 times because I each one of my 1099s are tied to multiple properties.
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I have asked 3 accounting professionals and received slightly different answers.
I am looking for feedback from other accounting or CPA professionals. Thank you much